Legacy Bank raises capital, has agreements for more

Legacy Bank of Florida said it has entered into agreements to raise $16.3 million in additional capital.

Of that amount, $2.8 million was raised Monday as the initial step in strengthening the capital of the Boca Raton-based bank, which was considered "adequately capitalized" as of June. The remainder will be invested following the receipt of all required regulatory approvals and satisfaction of other standard closing conditions.

Those involved in the capital raise include a group of private investors, as well as members of Legacy Bank's existing shareholder base and its local community.

"We are excited to have entered into definitive agreements to strengthen the capital of Legacy Bank, and to have completed the initial phase of our capital raising efforts," Chairman and CEO Dennis Bedley said in a statement. "We believe these transactions indicate that our South Florida market has a bright future, and that Legacy Bank continues to enjoy the support of its community."

Following the completion of the capital infusion into Legacy Bank, its existing management will continue to serve in their current roles. Significant investors in the transaction will select three new directors who will join Legacy's board.

“We look forward to working with our new investors to pursue our goal of becoming a leading community bank in southeastern Florida,” Bedley said. “With additional capital, Legacy Bank will be able to encourage and facilitate economic growth within the communities we serve."

Founded in 2006, Legacy Bank has offices in Boca Raton, Delray Beach, Fort Lauderdale, Pompano Beach and West Palm Beach.

The bank has total assets of $295 million as of Sept. 30. In addition, loans and deposits were $200 million and $268 million, respectively. It specializes in business and professional banking, including commercial credit and deposit products, and a full line of retail and corporate cash management products.